of Himachal pradesh
era of planning started in Himachal in 1948 along with the rest of
India. The first five year plan allocated Rs.5.27 crore to Himachal.
More than 50% of this expenditure was incurred on road construction
since it was felt that without proper transport facilities, the
process of planning and development could not be carried to the
people, who mostly lived an isolated existence in far away areas.
Himachal now ranks fourth in respect of per capita income among the
states of the Indian Union.
Agriculture contributes over 45% to the net state domestic product.
It is the main source of income and employment in Himachal. Over 93%
of the population in Himachal depend directly upon agriculture which
provides direct employment to 71% of its people. The main cereals
grown are wheat, maize, rice and barley.
Himachal has a rich heritage of handicrafts. These include woolen
and pashmina shawls, carpets, silver and metal ware, embroidered
chappals, grass shoes, Kangra and Gompa style paintings, wood work,
horse-hair bangles, wooden and metal utensils and various other
house hold items. These aesthetic and tasteful handicrafts declined
under competition from machine made goods and also because of lack
of marketing facilities. But now the demand for handicrafts has
increased within and outside the country.
Himachal is extremely rich in hydel resources. The state has about
25% of the national potential in this respect. It has been estimated
that about 20,300MW of hydel power can be generated in the State by
constructing various major, medium, small and mini/micro hydel
projects on the five river basins. The state is also the first state
in India to achieve the goal of having a bank account for every
As per the current prices, the total GDP was estimated at Rs 25,435
crore (Rs 254,350,000,000), as against Rs 23,024 crore (Rs
230,240,000,000) in the year 2004-05, showing an increase of 10.5%